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Taoiseach wants companies in Ireland to 'hold the nerve' over threatened US tariffs

Micheál Martin was speaking at the South by Southwest in Texas
Micheál Martin was speaking at the South by Southwest in Texas

The Taoiseach has begun his visit to the United States with a trip to Austin - the capital of Texas (unofficial motto: Keep Austin Weird).

It's a bit different to the rest of Texas, and it's that difference - that weirdness - that has helped make it into a technology and culture hub, that and the other regular Texas factors like low taxes and cheap energy.

It attracts a global audience for the South by Southwest Festival of Technology, Music and Film (SXSW) - three areas Ireland likes to compete in - and many of the state's trade and business agencies are here with tech firms, bands, producers and movies.

A good place for the Taoiseach to kick off his US visit and feel the economic links ahead of his White House visit, where he will be hoping to talk the business of business to the US's businessman-in-chief, President Donald Trump.

Some of the lines he hopes to use in his conversations with the president were test-marketed in Austin - one of them being the very big two-way street that now exists in US-Irish investment flows, as well as trade flows.

The first part of the equation is obviously the US investments in Ireland, some of which - notably the pharmaceutical sector - play a big role in driving up Ireland's goods trade surplus with the US.

According to the Wall Street Journal, Ireland has the biggest trade surplus with the US of any EU state - including Germany.

So handling this issue will be very important, as President Trump has made no secret of his desire to drive investment in the US by US companies that he wants to see bringing production back to the US from overseas.

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The Taoiseach mentioned some of his recent dealings with US multinationals in Ireland.

"Over the last while back in Ireland, I was at LinkedIn, opened their office in Dublin, met with Microsoft, as you know, Brad Smith [vice chair and president of Microsoft], have been in touch with a number of multinational companies on the pharmaceutical side, and our strategy really is to, notwithstanding all of the commentary and so on, is to really bring home the idea that this is an enduring, robust presence in Ireland, and the relationship is a very strong one that we want to see grow into the future."

Speaking at the South by Southwest (SXSW) Technology Music and Film Festival, the Taoiseach said companies operating in Ireland need to "hold the nerve" in the face of threatened US tariffs.


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"How it's a two-way street will be the main point I'd be making. It's not just American investment in Ireland, it's Irish investment in America as well.

"We are buying a lot of stuff, a lot of American products. We have a lot of Irish companies based here that will grow, and that will continue to grow."

Mr Martin also urged companies with investments in Ireland not to "react too quickly" to the threat of Mr Trump imposing 25% tariffs on the EU, adding that they should see "how the land settles".

He said: "Hold the nerve, this is a period we've got to navigate."

As with the recent visit to Washington by the EU Trade Commissioner (and post Brexit veterean) Maroš Šefčovič, the Taoiseach knows that the US and the EU have a difference in how and what they count in their respective trade statistics.

Speaking in Austin, the Taoiseach said that Ryanair and AerCap's purchase of Boeing aircraft is not captured in the US Department of Commerce figures and that Ireland's "high standards" in life sciences is beneficial to US pharmaceutical companies - factory certification by the Irish regulator is good for both the European Medicine's Agency and the US Food and Drugs Administration (FDA).

In Austin, he paid a visit to long-time Ireland investor Dell Computers and software testing company Tricentis, which is adding 50 jobs at its facility in Cork.

But Ireland is also expanding its presence in the US, with 120 Irish companies employing around 4,000 people in Texas - more than 200,000 Americans working for Irish companies in the whole US, according to Enterprise Ireland.

Kevin Sherry, Interim CEO of Enterprise Ireland, the agency charged with helping Irish firms export overseas, said: "The USA is the second largest country export market for Enterprise Ireland client companies with €5.9 billion exports in 2023, representing 17% of our total exports," he said.

"Supporting Irish companies to scale and invest in the USA is an important priority for us and our business events programme across the USA for St Patrick's Day. We will focus on further supporting our client companies to strengthen their business impact in the USA."

This week, Enterprise Ireland opened its seventh US field office, in Atlanta, Georgia.

Mr Sherry said: "The expansion of our footprint and team across the USA underscores our commitment to support Irish companies to scale in the US, delivering economic value for both Ireland and the USA."


Irish investment in the US market:

Ardagh Group: Leading packaging producer, operates 17 US plants across 12 states, serving beer, food, and spirits brands. It employs around 6,000 in the US and invested $1.5bn in its US operations over the past four years.

Glanbia: Nutrition company with over 20 US production facilities and several innovation centre and employs 4,000 people in the US

Glen Dimplex: Operates 2 plants in Michigan and Washington, employing around 500 people. The company has invested heavily in its US operations.

Kerry Group: Invested $5bn plus in the US, including a $120m sustainable facility in Rome, Georgia. Kerry Group operates 70 sites (48 manufacturing) and employs around 6,000 people.

Kingspan: Insulation and building solutions with 32 US sites across 17 states and plans a $750m investment, including three new manufacturing sites this year. The company employs around 2,500 people in the US.

Ornua: Dairy ingredients and consumer brands with more than 50 years of US investment. Owner of Kerrygold, Ornua employs more than 700 people in rural Wisconsin and Minnesota and supports more than 900 indirect jobs

Ryanair: One of Boeing's biggest customers, placing a $40bn order for MAX-10 aircraft in 2023, the biggest US goods order by an Irish firm.

Smaller Irish companies which announced a scaling up their presence in the US:

Boston: CergenX, a spinout from University College Cork's INFANT Centre specialising in neonatal neuroprotective care, announces FDA Breakthrough Device Designation for its AI-powered 'Wave' device, enhancing fast neurological diagnosis for newborns.

Boston: Climeaction, an Irish company specialising in decarbonisation and sustainability solutions, has a new office in Boston to collaborate with businesses across various sectors.

Chicago: Solvotrin Therapeutics, an Irish healthcare company which focusses on enhancing established therapies. It has partnered with Ortho Molecular Products to bring its clinically proven Active Iron supplement to the US.

Chicago: NeuroBell, an Irish medical technology startup specialising in AI-assisted, pocket-sized brain monitoring devices to detect seizures in newborns. It has opened a new office in the US and announced a partnership with Parkview Health, one of the largest healthcare systems in Indiana.

New York: Kefron AP, an Irish scale-up from the Kefron Group specialising in AI-driven accounts payable automation software. Launches its SaaS solution in the US, and opened an East Coast headquarters.

Atlanta: Midland Steel, a provider of sustainable engineering solutions for construction.

Florida: Genesis Automation, a global leader in healthcare supply chain solutions, secured a significant contract with Jackson Memorial Hospital in Miami, one of the largest healthcare systems in Florida.

Philadelphia: Cubbie, a company offering sensory-friendly immersion products to support neurodiverse individuals, partnered with Neumann University for its first US installation.


Again the emphasis is on the win-win aspects of the transatlantic relationship. No doubt the large US surplus in services will also be mentioned in talks in the White House (it's not just the Taoiseach - a wider Government delegation gets to meet counterparts in the administration while the two leaders talk in the Oval office).

But it's not just "business" that is expanding.

The cultural sector is now responsible for about 9% of employment in Ireland, according to the Taoiseach, and those cultural industries are a major part of the SXSW week – particularly the crossover between technology and the arts, such as visual effects and post-production work, as well as film finance.

Film plays a big part in that, and the SXSW film festival has become a major part of the festival scene, which in turn is vital for the independent sector to justify investments in film projects and get distribution deals.

This year a record six projects supported to some extent or another by Screen Ireland have been selected for the SXSW festival.

The festival will host the world premiere of 'The Astronaut', which was shot in Ardmore, while the television series 'Mix Tape' is an Irish/Australian co-production.

The US premiere of 'The Surfer', directed by Irish man Lorcan Finnegan, will be held at the festival, while the world premiere of 'Drop', which was shot in Ireland, is also on the festival card.

'Hallow Road', a Czech/Ireland/UK co-production, which was filmed in Wicklow and supported by Screen Ireland, gets its world Premiere at SXSW.

The animation short, 'Retirement Plan', was funded by Frameworks, Fís Éireann/Screen Ireland and RTÉ's flagship animated short film scheme.